Ben is asked to rate the utility he would get from reading different types of publications for the next hour. If he read a graphic novel he would get utility of 5. If he read a biography, he would get utility of 4, and if he read his economics textbook, he would get utility of 9. An economist would predict that Ben will spend his next hour reading:
A. It is impossible to predict how Ben will spend his time.
B. a graphic novel.
C. his economics textbook.
D. a biography.
Answer: C
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Given the annual rate of economic growth, the "rule of 72" allows one to
A. determine the growth rate of per capita GDP. B. calculate the size of the GDP gap. C. determine the accompanying rate of inflation. D. calculate the number of years required for real GDP to double.
In the 1960s, advocates of the Phillips curve suggested ________
A) an "optimal" goal of 1% unemployment and 1% to 2% inflation rates could be achieved B) a "realistic" goal of 7% unemployment and 6% to 7% inflation rates could be achieved C) a "nonperfectionist" goal of 3% unemployment and 4% to 5% inflation rates could be achieved D) all of the above E) none of the above
The act of buying a commodity in one market at a lower price and selling it in another market at a higher price is known as:
A. buying long. B. selling short. C. a tariff. D. arbitrage.
According to Paul Ehrlich's 1968 prediction in The Population Bomb, population growth would result in:
A. Overuse of natural resources leading to famines B. Stable uses of natural resources creating long-term stability C. Efficient use of natural resources fostering prosperity D. Reduced dependence on natural resources leading to growth